Governance and Transparency

Porsche sets the highest standards for itself. For ­Porsche, ethical behaviour is essential, not least because the confidence that the customers, partners and society have in the company is dependent on this. Acting and doing business with integrity therefore serve as the foundations for all of the company’s activities. In this area of action, ­­Porsche is strategically working to increase transparency and responsible corporate governance in all the relevant areas. The objective is for the sports car manufacturer to be perceived by the industry and society as a strong partner and an exemplary company. ­Porsche also has itself rated by external organisations to this end and bases its improvement measures on the results of these ratings.

Sustainability in  the business processes

Effective, sustainable activity is a fundamental prerequisite for the economic success of a business. Only those that enjoy economic success have the means to intercede on behalf of the environment and society. ­Porsche therefore builds on economic stability and value-creating growth.

Securing high profitability
­Porsche has excellent profitability. It has set itself the strategic target of achieving a min­imum operating return on sales of 15 per cent and a return on investment of at least 21 per cent. The sports car manufacturer wishes to ensure that it continues to meet its own profit targets in the future on the basis of continuous productivity and process improvements as well as strict cost management. This applies irrespective of its high investments in e-mobility and digitalisation. Porsche’s company management is focused on maintaining a flexible and scalable organisational and cost structure. The cost-effectiveness of strategic projects and plans in the product portfolio is therefore prioritised and safeguarded within defined budgets. ­Porsche gauges and reports on the success of its measures on the basis of financial data and value creation calculations.

­Porsche focusing on sustainable financing
In the future, business and the ability to compete will be heavily dependent on the transition to climate-neutral and more closed-loop-oriented products and production forms. With the European Union’s ­Sustainable Finance Strategy, more and more capital will be directed into sustain­able investments. Financial products that are used to pursue sustainable objectives form part of this trend. ­Porsche already embarked on a new path in August 2019 with the refinancing of sustainable projects. The company is the first automobile manufacturer to date to offer a green Schuldschein (promissory note), with a volume of one billion euros. The refinanced project portfolio includes funds for the development of the all-electric ­Porsche Taycan and investments in modern, energy-efficient production buildings and facilities that will be used exclusively for manufacturing and developing battery-powered vehicles.

The company has obtained Clean Transportation certification from the Climate Bonds Initiative (CBI) for the composition of this portfolio of green projects. This was carried out in accordance with the Green Bond Principles of the International Capital Market Association and was verified by the sustainability rating agency ISS ESG. ISS ESG and the CBI confirmed that the funds had been used correctly and completely for the project portfolio in post-­issuance certification carried out in September 2020. The refinanced green project port­folio supports the United ­Nations’ Sustainable Development Goals, specifically targets 9.4 (clean technologies to reduce CO₂ emissions) and 11.2 (access to sustainable transport systems). The proportion of sustainable refinancing in the Automotive subgroup is currently around 60 per cent. This is to be increased to 100 per cent by 2030.

Transparent corporate governance

ESG stands for environment, social and governance, and represents a set of requirements made of companies by the capital market. It can be used to better understand and assess companies’ performances in the area of sustainability. ­Porsche introduced extensive ESG management in the year under review.

Porsche is aware of the importance of its reputation of doing business successfully. The company therefore takes its stake­holders’ interests into account in its decision-making and sets great store by living up to society’s expectations.

ESG management at ­Porsche
For this reason, ­Porsche introduced extensive ESG management in the year under review. ESG stands for environment, social and governance, and represents a set of requirements made of companies by the capital market. It can be used to better understand and assess companies’ performances in the area of sustainability.

­Porsche planned its ESG management system in 2021 and incorporated appropriate evaluation processes into its existing sustainability management. Responsibility for this lies with the Sustainability department, which also manages the sustainability strategy. Adopting an integrated approach, the ESG management system complements the strategy with additional key topics.

The company established a set of per-form­ance indicators which illustrate ma­terial non-financial ESG contributions and transparently demonstrate the ­Porsche business model’s contribution to sustain­able development. Comprehensive ESG management will be established beyond the year under review for a subset of these performance indicators.

Going forward, the ESG management system should make it easier for the Executive Board and the departments involved to monitor and manage their ESG contributions, interpret results and produce regular reports. It was decided in the year under review that a centralised IT system would be established for this purpose. The Sustainability department pools this software’s output, manages the monitoring process and assists the departments with material decisions.

ISS ESG rating
Porsche is voluntarily assessed by the sustainability rating agency ISS ESG at regular intervals. Here, the company’s sustainability performance in the areas of the environment, society and responsible corporate govern­ance is examined. ­Porsche considers this ­independent, external assessment to be an important tool and source of impetus. ­Building on this, it can continuously improve its sustainability management.

Porsche sets great store by its sustainability performance being assessed independently. In October 2021, the company was once again awarded Prime status by the rating agency ISS ESG and improved its previous year’s rating of C+ to B–. Prime status is awarded to companies with ESG perform­ance that exceeds a stipulated threshold which is typical for the sector. This means they meet ambitious performance requirements. The sports car manufacturer has set itself the goal of being classified as one of the leading companies in the automotive industry in this rating.

ISS ESG assesses sustainability performance on the basis of more than 100 standardised, industry-specific indicators covering the ­environment, society and corporate governance. ISS ESG annually analyses more than 800 different indicators at over 8,000 companies around the world. Its analysis is based on information in the public domain or information obtained through direct dialogue.

ISS ESG rated ­Porsche’s sustainability perform­ance especially positively in the areas of
“Staff and suppliers”, “Society and product responsibility” and “Environmental management”.

For its assessments in the automotive industry, ISS ESG focuses particularly strongly on the companies’ strategies regarding alternative drives, in particular electric vehicles. With the Taycan, the all-electric successor to the Macan and the company’s further electrification strategy, ­Porsche is well placed for the future in this focus area.

Compliance and integrity  

The effectiveness of the compliance management system is regularly audited.

Acting responsibly also involves complying with the applicable laws and acting with integrity. Porsche requires compliance of the employees in the form of conforming to rules and promotes integrity as a personal attitude.

Established compliance structure
The point of compliance is to avoid penalties, fines, claims for damages or other legal consequences for the company or its employees. Compliance also contributes to protecting the company’s good reputation and preventing any loss of confidence in the company.

The company promotes legally compliant conduct by means of a compliance structure which is based as closely as possible on the business model. This includes legally water­tight processes as well as preventive and reactive measures. ­Porsche’s compliance management system currently encompasses six areas of compliance, including anti-corruption and anti-money laundering measures. With its adopted compliance structure, ­Porsche seeks to prevent violations of the law and help its employees act in accordance with the legal and statutory provisions. It includes a Chief Compliance Officer, compliance officers covering specific topics at ­Porsche AG and local compliance officers at the Group companies.

Regular risk analyses are used to determine where action is needed and derive preventive measures. Aspects such as the company’s business model, relevant environmental conditions and the relationships with business partners are taken into account. At ­Porsche, binding rules are adopted and communicated and confidential compliance advice is offered. These examples count among the key measures. Fundamentally, the Code of Conduct sets out the most important rules to be applied at ­Porsche. Directed at the managers and the employees, it documents the expectations of their assuming responsibility for compliance as members of society, as business partners and in the workplace. It also specifies the rules regarding how to avoid corruption or violations of antitrust law, how to handle conflicts of interest or the receipt of gifts and how to prevent money laundering. Managers and other employee groups are given targeted information and training on compliance and the related risks as a means of sustainably promoting lawful behaviour.

­Porsche’s central compliance help desk offers information and advice internally, answering all of the managers’ and employees’ questions regarding compliance issues. In addition, employees can report possible violations of the law to an internal office set up accordingly. Outside the company, Porsche managers, employees, customers and business partners, as well as public officials and other external individuals, can report possible legal violations anonymously to two ombudsmen. Porsche diligently investigates all reports, taking the applicable data protection regulations into account. Any violations identified are responded to in line with the relevant labour and co-determination laws. Suitable countermeasures can be introduced and individual cases of misconduct can be sanctioned.

91 per cent of the employees have training in the avoidance of conflicts of interest and corruption.

The effectiveness of the compliance management system is audited by the affected department as part of the governance, risk and compliance (GRC) process and regularly also by the Internal Audit department. The compliance management system is also regularly incorporated into site checks during prepar­ation of the Annual and Sustainability Report.

The Executive Board and the Supervisory Board of ­Porsche AG receive regular reports on action taken by the compliance organisation and on the preventive and reactive measures implemented at the company.

In 2021, compliance communications focused among other things on intranet posts regarding publication of the digital learning module “Competition law in procurement” and about International Anti-Corruption Day. These were complemented by reporting on other compliance issues in the site newspaper.

The employees’ and business partners’ responsibility for compliance is comprehensively governed by the Codes of Conduct.

Code of Conduct
The Code of Conduct was updated for the employees in the year under review. This ­governs all aspects of the employees’ responsibility for compliance:

• As a member of society: human rights; equal opportunity and equal treatment; product conformity and product safety; environmental protection; donations, sponsorships and charity; communication and marketing; political lobbying.

• As a business partner: conflicts of interest; gifts, hospitality and invitations; prohibition of corruption; dealings with officials and holders of political office; prohibition of money laundering and terrorism financing; accounting and financial reporting; taxes and customs; fair and free competition; procurement; export control; prohibition of insider trading.

• In the workplace: occupational safety and healthcare; data protection; security and protection of information, know-how and intellectual property; IT security; handling company assets.

The Code of Conduct for Business Partners governs ­Porsche’s expectation that its business partners will comply with the law as applicable. Acknowledgement of principles of ethical conduct and expectations regarding acting sustainably are also enshrined in this binding document.

Both of these codes explicitly bring the whistle-blower system for potential violations of the law to people’s attention, stating the relevant internal and external reporting channels. Detailed information about this system is also published online, where there is the option of especially safe, anonymous whistle-blowing.

Compliance with integrity is supported by ambassadors and a multiplier network.

Compliance training
The compliance officers are responsible for conducting compliance training in collab­oration with the HR department. A large number of virtual and face-to-face training sessions for various target groups were offered in 2021. In addition, the Code of Conduct digital learning module was updated and published. This teaches the principles of the Code and provides contact details for the whistle-blower system on the one hand and, in particular, explains the content of the Group guideline “Avoidance of conflicts of interest and corruption” on the other. ­Porsche AG’s training quota at the end of the year under review was 91 per cent. A digital learning module on the topic of fraud prevention was developed and will be ­available from 2022. This follows the established fun approach of the ­existing compliance training format and takes the form of a digital board game. The participants’ knowledge is enhanced through their solving tasks and practical cases and their having to confirm that they have read general information.

Promoting integrity
Integrity means firmly believing in one’s ­values and ethical principles and steadfastly acting in accordance with these. It is an ­integral part of the management mission statement and is a top priority within the ­Porsche strategy regarding employee ­collaboration. Acting with integrity is also indispensable in retail. Integrity is therefore firmly embedded in the ­Porsche service standards as a key value. The high level of attention paid to this topic is also reflected in the reporting to the Executive Board and Supervisory Board. It is additionally a focus in the decision-making processes of all the top committees.

As an integral part of the management mission statement, integrity is a top priority at ­Porsche.

The topic of “Culture and integrity” is being rolled out internationally at ­Porsche by the Volkswagen Group as part of its Together4­Integrity (T4I) programme. The resultant long-term measures aim to further strengthen the integrity culture and will be implemented as scheduled.

A catalogue of internal communication measures is used to continuously raise awareness of the topic of integrity among the workforce. The interdisciplinary multiplier network covering the brand, culture and integrity was ­further expanded in the year ­under review. This network serves as a platform for knowledge exchange, ideas and presentations, and assists the ambassadors in embedding the topic of integrity within the departments. A poll on acting with integrity and lawful behaviour within the corporate organisation is carried out annually as part of the ­Porsche employee survey. In the event of conspicuous mood barometer findings, the causes are investigated and appropriate measures are introduced if necessary, with the involvement of HR and the relevant line manager.

Integrity is an integral part of the current and future HR development programmes. Dialogue events regarding Porsche’s values and culture are held in the organisational units.

The compliance officers deliver the training on the basis of a subject-specific plan which uses risk analyses to identify the relevant target groups and key areas of content. This also defines the number and frequency of events as well as the capacity needs. A regu­lar programme of set training events is in place for (new) managers, junior managers (format ended in 2021), new employees and trainees. Training is also provided on current topics with specific departments or on request.

All compliance training at ­Porsche is binding. The training progress made in the course of the year is monitored, with the final training status being reported both to the Compliance Council and to the Executive Board and ­Supervisory Board. The Compliance Council coordinates the ­Porsche Group’s compliance roll-out measures. It also ad­vises the Chief Compliance Officer regarding further de­velopment of ­Porsche’s compliance management system.

Further details of the Compliance department’s training programme and communications are available to Porsche employees on the intranet. In addition to the relevant Group and company guidelines, this features information on compliance culture and the compliance organisational structure. It also provides information about who to contact with queries or information and about the ­reporting channels as well as films, flyers, information cards and brochures.

Upholding human rights
As a company that campaigns for diversity and equal opportunity, the upholding of ­internationally recognised human rights is a matter of course for ­Porsche. This applies on the one hand to the company’s own sites. On the other hand, it is also something which ­Porsche expects of its direct suppliers, who are required to also implement the corresponding requirements in their lower supply chain levels. The sports car manufacturer rejects child labour, forced labour and compulsory labour as well as all forms of modern slavery. ­Porsche develops and produces its products in accordance with the relevant conventions, including the labour and social standards of the International Labour ­Organization (ILO) and the OECD Guidelines for Multinational Enterprises.

A key measure in the year under review was the global roll-out of risk analysis on the topic of human rights as part of the ­Porsche Group’s established compliance risk ana­lysis. The sports car manufacturer also incorporated human rights aspects into its training and communication measures, for example with background information, warning signs and recommendations for action in the event of indications of human rights violations.

Digitalisation, data protection and corporate digital responsibility

Fifteen billion euros for digital transformation, sustainable production and electro mobility.

At ­Porsche, digital innovation and techno­logical progress are key drivers of the ­company’s future. Digitalisation is therefore enshrined in ­Porsche’s Strategy 2030 as a cross-cutting strategy. Porsche is also investing heavily in its own digital transformation.

Investment in digitalisation
­Porsche will spend 15 billion euros on digital transformation, sustainable production and electromobility up to 2025. At ­Porsche, the operating system used for digitalisation is agility. A transition to being lean and agile will allow for creative and innovative collaboration and will expedite targeted change. In add­ition, it will give the Porsche customers better products and services. Digital product organisation is one example of the implementation of these work methods – self-­organised teams work interdepartmentally, all using the same methods, principles and processes. A common rhythm is established in which various goals are brought together and a culture of collaboration is promoted, ­resulting in what’s known as the “­Porsche Takt”. In this way, the company is further developing its business agility, reducing the time to market and boosting app ratings.

­Porsche uses the Scaled Agile Framework (SAFe). With this, the company gives the ­agile work methods in all the digital product teams an overarching framework and caters to the increasing number of digital projects with a standardised concept. SAFe combines lean, agile and DevOps principles and practices for the iterative development of software and digital products. It allows these principles and practices to be extended across large organisations, thereby enabling a company to master complexity far beyond the team and project levels.

­Porsche is supporting a research project to make the effect of agile work methods quantifiable. The Chair of Strategy and Organization at the University of Tübingen is involved in this as a scientific partner. A total of 72 performance indicators allow agile and trad­itional project work in the areas of perform­ance, product, teamwork and the individual to be compared.

Data security, transparency vis-à-vis the customer and control over data disclosure count among the primary principles in all of ­Porsche’s digitalisation projects. The customers have a great deal of confidence in the ­Porsche brand. The company therefore makes a particular commitment to handling the data entrusted to it as securely and as responsibly as possible.

With its digitalisation strategy, ­Porsche is enhancing its innovative power outside of the company too. The sports car manufacturer has been systematically building up a start-up ecosystem to this end for a number of years. The following units and initiatives cooperate closely under the auspices of ­Porsche: ­Porsche Ventures as ­Porsche’s venture capital arm, the technology unit ­Porsche Digital, the company builder Forward31 and APX, a joint venture for young entrepreneurs established by Axel Springer and ­Porsche Digital as long-term partners. Porsche ­covers the entire start-up arena with this ­agile quartet. ­Porsche is also a partner of the open innovation platform Startup Autobahn, which serves as an interface between industry-leading businesses and young technol­ogy companies. Its objective is to test innovative technologies and take them to production maturity.

Porsche is enhancing its innovative power by systematically developing a start-up ecosystem.

Porsche’s digital transformation is also to lead to a sustainable future. For example, the company is assisting the “aware” sustainabil­ity platform through Forward31, with ­Porsche further developing the German sustainability platform’s strategy and business model in ­cooperation with the platform founders. The Berlin based start-up is pursuing the goal of accompanying businesses and consumers on their path to a sustainable future on the basis of knowledge transferand input from a cross-industry network.

Customer privacy
The protection of personal data is an utmost priority at ­Porsche. This includes the right of customers to determine what is done with their data. Personal data is safeguarded on the basis of a data protection management system which is organised globally and managed centrally within the organisation. Porsche’s aim is that all products are developed with data protection in mind and designed from the outset in a way that ensures customers can trust that their data is safe. To this end, data protection has been made a key component of the product development process at Porsche. All functions and control units are examined by the development team early on regarding their data protection sensitivity. If needed, they are add­itionally checked by a team of data protection lawyers, with not only the legal requirements being taken into account, but also the objectives of ­Porsche’s data protection strat­egy, which focuses on the customer.

With its Data Protection department, ­Porsche creates the basis for the legally compliant and appropriate handling of personal data. The data protection management system was developed in accordance with recognised national and international standards (ISO/IDW/ISEA). Compliance with the internal processes and rules is verified by an internal control system (ICS), the ongoing optimisation, amendment and further development of which ­Porsche ensures by means of a regular review of the data protection management system and its processes (plan-do-check-act, PDCA). These two mechanisms (ICS and PDCA) ensure that the data protection management system has a user-oriented design and that it and its components are effective. At the same time, new data protection requirements can be updated in each process to maintain compliance.

With this management system, ­Porsche pursues the objective of protecting its customers’ privacy and their right to determine what happens to their information. The rights of the customers, employees and suppliers are taken into account during operation of the management system. Particularly in the context of the European Union’s General Data Protection Regulation (GDPR), customers are able to assert their rights in their capacity as data subjects. For example, they can find out from the Group Data Protection Officer what data the company holds on them via an in­formation process. The management system also implements all requests for the erasure or rectification of personal information as well as objections to data processing.

­Porsche has so far avoided any major data privacy violations thanks to appropriate technical, organisational and awareness-raising measures and training. In preparation for a potential violation, ­Porsche created an integrated process via which data priv­acy violations can be readily identified and rem­edied. The company sets great store by ­reducing and ideally eliminating any residual risks for the data subjects. The process ­allows potential risks for the customers in the event of data privacy violations to be swiftly resolved. At the same time, the customer is transparently informed.

Data protection organisation and strategy
­Porsche firmly believes that effective and evident protection of personal data is essential. In this way, the company maintains the brand’s high reputation, guarantees product safety and ultimately enables new business models. Risks are minimised and professionally managed. The ­Porsche data protection strategy therefore pursues the vision of “­Privacy – Accelerating Dreams & Innovation!” and is embedded within ­Strategy 2030’s “Digital security and priv­acy” strategy field.

The data protection strategy brings together data-driven innovation, the ethical use of data and compliance with the legal requirements. It is globally positioned on the basis of a market survey conducted in 2021. Internationally, ­Porsche clearly focuses on a high level of customer confidence. In the digital age, the company considers its customers’ digital self-determination to be key to the company’s success. The customers should not only have complete control of their vehicle, but should also be in the driver’s seat on the information superhighway. In the future, people’s confidence in the ­Porsche brand should be characterised not only by the quality of the products and services. Their conviction should also be reflected in their peace of mind that they themselves can determine what happens to their data. Corporate digital responsibility (CDR) features in the goals of ­Porsche’s data protection strategy and will be further expanded.

The Data Protection Officer is supported by a dedicated team and other interdisciplinary data protection coordinators. As a spokesperson for the brand, they are a member of the Group’s Steering Group on Data Protection. The objective of the Steering Group is to ensure uniform application of the statu­tory data protection requirements across all brands and to exploit synergies from cooperation within the Group. It also engages with various associations and specialist working groups.

To stay abreast of the developments in digit­alisation, ­Porsche established a Privacy ­Engineering unit within its data protection structure in the year under review. This provides technical data privacy advice and keeps track of the latest technical developments in terms of their significance to data privacy.

Once again in the year under review, no complaints regarding data privacy incidents were lodged with ­Porsche either externally or by any authorities. Internally, however, ­incidents were identified and reported thanks to the internal control measures and vigilant employees. Of these incidents, approximately 40 per cent proved to be false reports following investigation. None of the remaining cases resulted in increased risks regarding the rights and freedoms of data subjects. In all of the justified cases, ­Porsche took steps to remedy the causes in order to ideally rule out any such incidents again in the future. Due to internal confidentiality rules, no details of specific data privacy cases­ are published.

Corporate digital responsibility
If agility is ­Porsche’s operating system, digit­al responsibility is our user experience. Confidence in the performance and quality of the products constitutes part of the ­Porsche brand essence. Transposing this confidence of all the company stakeholders to the digital world is the subject of the corporate digital responsibility (CDR) strategy, which is currently being developed with the assistance of MHP – A ­Porsche Company. Many of the activities mentioned above are being consolidated under the umbrella of CDR and the complete portfolio continues to be expanded. Digital responsibility means transferring the principle of sustainability from analogue to digital value creation. ­Porsche can only fulfil its responsibilities for its own benefit and for that of the stakeholders on the basis of both components.

Innovations

7.7 million euros for the realisation of innovation projects in 2021.

The world is becoming more and more complex. A company therefore has to continuously adapt and evolve. ­Porsche therefore purposefully builds up new skills and adapts quickly to new customer requirements. Only then can the transition to electromobility, automated driving and digitalisation be a success.

Innovation Management
Society’s expectations of ­Porsche as a brand are ever-changing. New customer groups in particular will require ­Porsche to act more sustainably than ever before in the future and offer a product portfolio in keeping with this. At the same time, the products must live up to people’s expectations regarding perform­ance and quality.

The Innovation Management team therefore continuously realises ideas from throughout the company. This affords the employees the space they need to work creatively and creates the foundations for innovation. The concept has found fertile soil – 80 to 100 employees apply themselves every year either individually or in teams. Their inspir­ational suggestions range from product ­improvements and production line changes to new, digital solutions.

An idea has to fulfil three criteria in order for ­Porsche to consider it an innovation. It has to be new and unique, it has to be profitable and it must also offer a relevant customer benefit. If the feedback given is positive, the project is directly initiated with next to no preliminary work. It takes initiative for the ideas to be further developed because the idea provider assumes responsibility for project management. The Innovation Management department offers assistance with methodology, invests money if applicable and, if needed, contacts potential internal and external development partners. In this way, the Innovation Management department plays its part in innovative project ideas being validated in a structured manner and, in the event of success, more than likely ­being further developed through to series production. The Innovation Management department determines the ideas’ success with the aid of what’s known as the transfer rate. This determines the percentage at which early-stage projects could be transferred to series development.

Organisation
Organisationally speaking, Innovation Management is embedded as a cross-divisional team with a manager in each department. The team pursues a defined innovation agenda to focus its activities on the future topics of relevance to ­Porsche in the areas of the customer, products and the company. The topic of sustainability was made an integral part of the innovation agenda in the year ­under review and is to be focused on even more greatly in the future. The resultant projects will then contribute directly to ­Porsche’s sustainability targets being achieved.

In 2021, Innovation Management had a budget of 7.7 million euros at its disposal for the realisation of innovation projects. However, this sum represents only a small proportion of what Porsche spends on innovation. For example, additional resources have been exclusively earmarked for the ­topic of innovation at the subsidiaries ­Porsche Digital and ­Porsche Engineering.

In the context of innovation, there is a focus in particular on collaboration with start-ups and universities. For this reason, ­Porsche is also a member of Startup Autobahn and a partner to the CODE University of Applied Sciences in Berlin and the Leipzig Graduate School of Management. In some cases, ­Porsche also invests directly in up-and-­coming companies or launches initiatives to expedite digitalisation. More than 75 million euros a year have been earmarked for investment in start-ups and venture capital companies. This ecosystem includes the company builder Forward31 and the earliest-stage investor APX, a 50 : 50 joint venture with Axel Springer, both of which are based in Berlin. With the venture capital unit ­Porsche Ventures and ­Porsche Digital GmbH, the com­pany is always on the lookout for new start-ups that will strategically advance the brand.

Internally, vehicle development innovations have a key part to play in preliminary de­velopment in particular. At the heart of preliminary development are the cycle plan’s target vehicles and their concrete requirements as well as the brand identity focuses, which include performance, fast travel, the driver experience, design, quality and sustainability.

In Strategy 2030, the strategy field “Innova­tive capabilities” was created as part of the “Organisation” cross-cutting strategy. This enhances the various innovation units’ collaboration and focuses it on common content. ­Porsche is pursuing the goal of using the available funds as efficiently as possible (transfer rate > 55 per cent) in order to be the technology leader in defined focus areas by 2030.

Innovations contribute to differentiation between the ­Porsche vehicles.They ­improve the value creation processes and assist the company in achieving its sustainability targets. They are therefore a key factor that influences longterm success.

Long-term customer relations and satisfaction

­Porsche is a supplier of exclusive vehicles and services. High levels of customer ­satisfaction and close customer relationships have therefore always played an import­ant role. The range of products and services is always evolving. It is therefore especially important that the customers be addressed individually throughout their vehicle’s life ­cycle, for example with tailored offers. Porsche achieves this with a customer relationship management system that extends throughout the whole customer relationship.

Extension of digital customer care
­Porsche aims to be able to reach its customers around the clock, whatever their location. The Sales and Marketing division has therefore increased its expansion of digital contact points in recent years. This has proved to be especially beneficial during the coronavirus crisis as it has allowed Porsche to keep in touch with its customers.

­Porsche significantly increased its efforts in expanding the My ­Porsche customer portal and extended the portal’s range to more than 1.2 million ­Porsche ID users around the world. A range of new functions were im­plemented during the reporting year. These ­include booking events, such as dealer events, and service appointments and also video-based vehicle checks, which are made available to the customers online by the servicing dealership.

­Porsche continuously expanded its online digital functions. The company also fun­damentally overhauled its strategy regarding native smartphone apps this year. In the ­future, all of the core services are to be conveniently pooled for the user in a new My ­Porsche app. This applies among other things to Connect, smart mobility, e-performance and digital customer care. The app solution makes interaction regarding a vehicle easier and facilitates dia­logue with retail and with the ­Porsche brand. ­Initially, the primary functions of the previous apps My ­Porsche Essentials, Connect and Car Connect will feature. Further ­highlights in the areas of e-performance and aftersales will follow before the end of 2022. The new My ­Porsche app was gradually rolled out in just under 50 countries around the world in the year under review. Regular function expansions ensure that the new vehicle generations are supported and that the customers are offered relevant, exclusive content.

Customer feedback regarding products and services
The products and services are evolving at a rapid pace. The mechanism for customers rating ideas and concepts therefore needs to be global in design and fast. How important is product substance sustainability? How can Porsche assist with city centre parking? What colours do ­Porsche customers prefer? Questions like these are continuously answered by many customers in the four most important markets in the ­Porsche Advisors Club.

In addition to traditional tools such as online questionnaires, an array of digital communication options is used here, including discussion forums, short surveys and online discussions involving Porsche employees and customers. The Porsche customers appreciate the opportunity to actively contribute to the development work. And ­Porsche ensures that it can continue to offer products with a high degree of customer acceptance.

An Executive Board committee receives a monthly report on the latest developments in product quality and customer satisfaction, both at ­Porsche AG and in the international sales subsidiaries. This committee is complemented by regular coordination between the Sales and Marketing departments and international representatives from the markets.

Customer and vehicle safety

Comprehensive vehicle safety above and beyond the legal requirements.

Vehicle safety is of the utmost importance to ­Porsche, with the safety of the vehicle’s occupants being the top priority. In addition, making sure that other road users are also kept safe is another crucial aim.

Vehicle safety that exceeds legal requirements
Vehicle safety at ­Porsche encompasses front, side and rear protection, roof and door stability, interior and component safety, as well as protection of pedestrians, ­cyclists and motorcyclists. Autonomous or highly automated driving and corresponding driver assistance systems will additionally contribute to making the roads even safer in the future.

Porsche’s response to vehicle safety extends far beyond merely meeting the legal requirements. The company’s focus is always on providing the best possible level of protection for its customers on the road.

The requirements and approaches to ve­hicle safety are discussed and agreed in ­several functional corporate working groups. The Safety working group comprising safety officers for all of the brands meets regularly.

Safety as a pillar of vehicle development
Vehicle safety is a decisive criterion from the outset in the development of vehicles. Development work in the area of vehicle safety ­focuses on functions and systems – everyone who is responsible for the safety of individual vehicle components and systems collabor­ates in a central function. With regard to “front protection” for example, the relevant experts come together to focus on the structure and aggregate design in terms of energy management and deceleration characteristic, as well as system development, restraint systems and primary safety components including components such as airbags and seatbelts. All of the necessary development tools such as simulations, component trials, system and full vehicle testing are also brought together. The functional properties are further tuned in multiple iterations on the basis of simulations and testing. This process is continuously improved all the way through to production maturity.

Assistance systems such as ABS, ESP and automatic emergency braking can prevent accidents. Another focus is to reduce the effects of an accident on the vehicle’s occupants. With this in mind, the deformation behaviour of the vehicle body is precisely defined for a variety of frontal, lateral and rear end impacts during the development phase of a new model. ­Porsche also uses a smart restraint system consisting of airbags and seatbelts. Simulations and crash tests are used to verify the effectiveness of the safety systems. In crash testing, the entire vehicle slams into an object such as a wall under controlled conditions. The crash test dummies used are fitted with sensors which ­allow an evaluation of the possible injuries to the occupants. Specific biomechanical limits are adhered to, stipulating such ­parameters as maximum acceleration or deceleration of the head.

­Porsche’s response to vehicle safety extends far beyond merely meeting the legal requirements. The company’s focus is always on providing optimum protection for its customers on the road.

Responsibility for the functional targets being met lies with the corresponding product development departments. The relevant project coordinator for vehicle safety handles overall product maturity tracking, while final approval of the function is given by the responsible head of the specialist area.

­Porsche level of protection
The targets in relation to the protection of vehicle occupants are derived from both the global legal standards for vehicle safety and numerous voluntary undertakings, as well as a range of internal requirements (the vehicle safety checklist). These guarantee a fundamental standard of safety that represents the state of the art as well as a general level of protection irrespective of the market and the model. ­Porsche therefore constantly monitors global legislation. Forecasts of new requirements and field observations from ­Porsche’s team of accident investigators and analysts likewise provide the basis for this.